The cryptocurrency world is attracting more and more investors every day. Of course, it is not a surprise, as it seems appealing for long-term and short-term investments. Many believe that crypto is the future, and it is possible that they are right.
Unfortunately, the crypto world attracts not only common users and investors, but hackers and scammers as well. For that reason, anyone who has some kind of crypto assets, must protect them, following the best practices.
As developers are trying their best to take more and more security measures, scammers are looking for new ways to hack the system. That is why we are looking at some of the most common security risks of crypto, and how you can protect your assets.
What are the main risks for crypto?
When talking about risks in the crypto world, the first thing that comes to mind is volatility. Cryptocurrencies are highly volatile, and can bring huge profits, and major losses. Of course, this is a risk you must be aware of, when investing in crypto.
However, today we are looking at security risks, or how your crypto can be stolen.
Scam
Scams are popular in the crypto world, and if you have probably heard of some of them. There are the so-called pump-and-dump schemes, fake coins, giveaway scams and many others, and if you are not careful where you invest in, you can lose a serious amount of money.
Hacker attacks
Keeping your assets on centralized exchanges can also be considered a mistake, as your profile can be hacked. Most experts recommend that you keep your funds in self-custody, if you are planning to HODL for the long-term.
Malware
This is a security risk related to losing your seed phrase. Unfortunately, it can be stolen without you knowing it and that can lead to some big losses for you. The best you can do, to protect your assets, is to use a hardware wallet, instead of a cloud.
Fake apps
Fake apps are another popular scam, used for stealing crypto assets. They can gain access to your private keys and drain your funds. Our advice is to double-check the URL, before you put any private data.
How to protect your crypto?
Despite the many attempts for scams in the crypto world, it is not impossible to protect your data and assets. What you need to do is to follow some good practices and always be careful.
Protect your private keys
Here are the main aspects of protecting your cryptocurrencies.
Keep your private key and seed phrase safe, and never share it with anyone;
Store your assets on a hardware wallet, instead of a cloud or a computer, and make sure it is safe and secure.
Back up your seed phrase and store it offline
Safe crypto storage
Wherever you keep your cryptocurrencies, make sure they are safe. Use different crypto wallets for different purposes, keep your long-term investments on a hardware wallet, and use centralized exchanges, only if you want to trade, swap or buy crypto.
Furthermore, you must be careful with the protocols you interact with, and the transactions you sign in, as any fake transaction can drain your wallet.
Secure your devices and internet connections
Another way to protect your crypto assets is securing your devices and internet connection. Actually, the perfect case is if you have a dedicated device, used only for crypto transactions. Use two-factor authentication, and avoid accessing certain websites, if you want to make sure that your assets are safe.
As you can see, it is up to you to keep your crypto assets safe. Follow all the best practices, and never underestimate the risk, if you want to make sure that your cryptocurrencies are absolutely safe.